Ann: Syrah Finalises Issue of Convertible Note, page-16

Last quarter we produced 50,000 tonnes of graphite for a cost of ~30m + ~6m in wages, fees and admin costs for a total loss of 11m for the quarter.

This quarter we have scaled back production and will produced between 25-30,000 tonnes of graphite. One can only imagine that our loss for this quarter will be similar between 10-15 mill. I suspect there will be reduction in the costs in wages fees and admin costs as well as a reduction in total cost to produce the graphite, as we are producing a lot leas for the quarter. However, the realized basket price is obviously going to be lower as well.

For those saying that we will lose 30 million this quarter i ask you how? We spent 36 million last quarter to produce ~50,000 tonnes, if we are reducing what we produce to 25-30,000 tonnes, even if we didnt sell any of the graphite, it would still have cost less than 30 million.

Will he a rough few years still ahead i think however.